Liverpool Mayor Joe Anderson has issued a stern threat to the region's bus operators, stating: "Change now or we will change you."
Mayor Anderson was speaking at a special meeting discussing the city council's controversial plans for a new city centre bus hub - designed to reduce the amount of pollution buses produce in the city centre.
During a tense meeting, the city leader took aim at bus operators for not doing enough to help passengers and improve air quality in the city.
And he said he believed the Liverpool City Region should follow Greater Manchester Mayor Andy Burnham in re-regulating the region's buses to put regional leaders in charge of what services are required.
Work started on the Old Haymarket bus hub plan this week - despite local businesses and residents complaining that it will cause major problems for them.
The bus hub is part of the wider £47m city centre connectivity scheme and will see buses park up on what is currently a car park site in an aim to reduce congestion and pollution.
And during the meeting, Mayor Anderson conceded that he would be open to changing - or even removing - the scheme if it doesn't work.
But he said bus operators needed to make changes to how they currently work in terms of routes, passenger treatment and green issues - or have the matter taken out of their hands.
He said: "I say this to the bus companies - if you don't change we will come for you.
"Re-regulation is coming - and if that doesn't happen our combined authority can buy new fleets of buses.
"Work with us and change or we will change you."
He added that operators needed to 'treat drivers better' as well.
Explaining his comments further to the ECHO, he added: "It is about there not being enough routes - buses are being taken off routes.
"They also need to move to new green fleets.
"At the moment the shareholders demand the same profits - with a publicly owned system that wouldn't be the case.
"We are looking at what Andy Burnham is doing and I think we should do the same."
Mayor Burnham this week announced his major plans that would allow politicians in Greater Manchester to set bus routes and fares - in a similar franchising model to the one used in London.
The move has gone down badly with bus operators in the region, who have threatened legal action against the plan.
Mayor Anderson said he wouldn't be worried if similar threats were made in our region.
He said: "I'm not frightened of any threats from bus companies - I'll threaten them right back.
"As a combined authority we've got £130m that we could invest in a new fleet of green buses."
The special meeting of the council's Regeneration and Sustainability select committee was called to look specifically at the Old Haymarket bus hub plan - which has received plenty of objections from businesses, residents and some local councillors.
And Mayor Anderson appeared to make a number of concessions on the scheme during the meeting - which could involve removing or changing it altogether.
He said: "We will monitor the situation and be really tough on our bus operators aren't doing what we tell them to in parking up and shutting down.
"If there is a detrimental impact then I would have no objections to removing it or looking again at it.
"We aren't doing this to upset people.
"If it doesn't work then we will look again at it and say we got it wrong.
"If there are changes that need to be made to this part of the scheme then that's what we will do."
And in another boost for objectors, he said that part of the plan which could see four buses parking directly outside businesses and homes could be changed and switched back to pay and display spaces if it is found to be having a detrimental impact.
But Green leader Tom Crone said he was firmly opposed to the bus hub - and said the council's wider connectivity scheme was a big missed opportunity.
He said: "I oppose the location of the bus hub and think it is in the wrong location.
"But the much bigger issue is that the missed opportunities within the connectivity scheme.
"Greens would make the hard decisions needed to start bringing about the mass change from motor cars to sustainable forms of transport."
